Lets talk first about Qualified Disaster Zone Employee Retention Credit :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh always offer a beautiful breakfast and have individuals really learn more about the program we must head to the room where we are able to show a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I mean you understand if you simply start to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I suggest think about how many actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything up until they actually get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has actually been ended up and the number of you think you’ve processed considering that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need you need professionals on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something actually important today the staff member retention credit which the majority of you have actually never become aware of I definitely hadn’t become aware of it till extremely recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call up your bank supervisor and state give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund alright go on sorry I just need to ensure we got that point I suggest that’s a big difference a loan versus cash money I like cash money that’s what we’re speaking about okay and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the initial cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get actual cash from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have owned a business but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP money would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big certainly now the huge question is why does nobody know about this since appearance when I first became aware of this when I initially satisfied Josh you know I have actually got lots of investments in lots of business I’m a major advocate for entrepreneurship in America and make many many financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them sensibly to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician buddies Guv Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one know about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan procedure the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was chaos since remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this organization and bottom line my firm Kevin has been in business since 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
company whose business is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily available to all companies no matter size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying wages differs by whether a company had, on average, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing support usually provide expertise and support to help organizations browse the intricate procedure of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Qualified Disaster Zone Employee Retention Credit
Eligibility Assessment: These business will examine your service’s eligibility for the ERC based on factors such as your market, revenue, and operations. They can help determine if you fulfill the requirements for the credit and recognize the optimum credit quantity you can declare.
Documents and Computation: ERC filing services will assist in collecting the essential paperwork, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit quantity based on eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can review your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the required types and documents on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have progressed gradually. These business remain upgraded with the most recent changes and ensure that your filings abide by the most current guidelines. If the IRS demands additional details or conducts an audit associated to your ERC claim, they can also offer continuous support.
It’s important to research study and vet any business using ERC filing help to guarantee their trustworthiness and competence. Look for recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these companies can provide important assistance, it’s always a good idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate services to keep and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt companies, and specific governmental entities. To qualify, companies must fulfill one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As pointed out previously, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of certified incomes paid to staff members, consisting of particular health plan costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. Nevertheless, the exact same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, allowing qualified companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to modify prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, generally Form 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have developed with time. The very best course of action is to speak with a tax professional or go to the main IRS website for the most current and comprehensive info concerning the ERC, including any current legal changes or updates.
To receive the ERC, a company must satisfy one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, government entities and companies that received a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC includes completing the needed types and including the credit on your employment tax return (normally Kind 941). The exact time it requires to process the credit can differ based on several aspects, consisting of the complexity of your organization and the work of the IRS. It’s suggested to talk to a tax expert for guidance specific to your scenario.
There are numerous business that can assist with the process of claiming the ERC. Some popular companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based on general understanding and might not reflect the most recent updates or modifications to the ERC. It is necessary to speak with a tax expert or visit the official internal revenue service site for the most accurate and up-to-date details concerning eligibility, claiming treatments, and available help.
Less than 100. If the company had 100 or less staff members on average in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. In other words, even if the.
employees worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “salaries” includes not simply money payments but likewise a portion of the cost of employer.
provided health care. Qualified Disaster Zone Employee Retention Credit
Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.